Barmore Company Has the Following Information Pertaining to Its Two

question 23

Multiple Choice

Barmore Company has the following information pertaining to its two divisions for the current year:
$\begin{array}{lrr}&\text { Division } A&\text { Division } B\\\text { Variable selling and admin. expenses } & \$ 35,000 & \$ 45,000 \\\text { Direct fixed manufacturing expenses } & 17,500 & 50,000 \\\text { Sales } & 100,000 & 200,000 \\\text { Direct fixed selling and admin. expenses } & 15,000 & 35,000 \\\text { Variable manufacturing expenses } & 20,000 & 50,000\end{array}$ Common expenses are $12,000 for the current year.
-Refer to the figure.What is the net income for Barmore Company?

• A)$20,500
• B)$32,500
• C)$150,000
• D)$300,000

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Definitions:

Total Return

The overall return on an investment over a certain period, accounting for both capital gains and dividends or interest.

British Securities

Financial instruments such as stocks, bonds, or other investment vehicles, traded or available in the UK market.

U.S. Dollars

The official currency of the United States, widely used as a benchmark and reserve currency worldwide.

Risk-Free Rate

The theoretical return of an investment with zero risk, often represented by U.S. government bonds.